NEW DELHI: India’s office market maintained its growth trajectory in 2025, achieving over 70 million sq ft in Grade A office leasing across the top seven cities for the first time. This surge was fueled by a robust year-end push and sustained confidence from occupiers, as reported by Colliers India.
During the year, total office leasing reached around 71.5 million sq ft, reflecting a 6% increase from the previous year. The final quarter was particularly significant, with quarterly demand surpassing 20 million sq ft, a 20% rise from the previous quarter, driven by substantial deal closures and expansion efforts.
Bengaluru led the office leasing market, securing nearly one-third of total leasing in 2025 with 22.1 million sq ft. Other major markets, including Delhi NCR, Hyderabad, Chennai, and Mumbai, contributed between 13% and 16% to the total, demonstrating a growing trend for multi-city expansion among occupiers.
The October-December quarter saw record quarterly leasing of 20.6 million sq ft, with Bengaluru alone leasing 8.1 million sq ft, followed by Delhi NCR at 4.2 million sq ft. Together, these two cities accounted for nearly 60% of Q4 2025 leasing.
On the supply side, new office completions in the top seven cities remained steady at about 56.5 million sq ft in 2025, a 5% increase from the previous year. Bengaluru, Hyderabad, and Pune led in supply additions, each adding more than 10 million sq ft, together making up nearly 70% of the year’s new supply.
However, quarterly completions dropped to 15.1 million sq ft in Q4 2025, marking a 6% year-on-year decline, as five of the seven major cities experienced reduced completions during that quarter. With demand outpacing supply, overall vacancy rates fell by 49 basis points, and average office rents increased by up to 15% year-on-year across key markets.
Technology firms remained the primary demand drivers, accounting for 37% of conventional office leasing in 2025. Overall conventional office space uptake was approximately 58.5 million sq ft, with tech companies leasing nearly 22 million sq ft, representing a 32% year-on-year growth. Other sectors, including BFSI, engineering, manufacturing, and consulting, collectively accounted for more than 40% of conventional leasing, indicating widespread demand across various industries.
Flexible workspace operators also continued their expansion, leasing around 13 million sq ft of Grade A office space in 2025, slightly more than in 2024. Flex spaces constituted nearly 18% of total office leasing, with significant activity recorded in Bengaluru and Delhi NCR, as well as growth in Pune and Chennai.
Global Capability Centres (GCCs) stood out as a pivotal growth driver, making up over 40% of total office leasing in 2025. GCCs leased close to 30 million sq ft during the year, buoyed by India’s skilled workforce, cost-effectiveness, and an increasingly prominent role in advanced technology, analytics, and product development.
According to Colliers, the outlook for the office market remains optimistic for 2026, backed by continuous GCC expansion, sustained demand from technology and BFSI sectors, increased adoption of flexible workspaces, and a preference for high-quality, sustainable office spaces in major cities.
